Organizations looking to attract and retain top talent can no longer rely solely on cash bonuses and increased compensation. An effective awards strategy as part of a recognition program can help increase employee engagement and loyalty. Research found that when asked what makes them feel most appreciated, a majority of employees preferred an awards-based recognition program over its cash equivalent because (1) an award item will be around longer and help them remember the experience, unlike cash which is quickly spent and forgotten. Some key reasons employees prefer awards over cash include that awards serve as a reminder of their hard work and the appreciation experience.

1. EFFECTIVE
AWARD
STRATEGY
CREATING AN

2. can no longer rely on
simply increasing
employee compensation
and offering cash bonuses.
retain top talent
ORGANIZATIONS
LOOKING TO
ATTRACT AND

3. In fact, employers can overcome this
challenge by implementing an
EFFECTIVE
STRATEGY
awards
in their recognition programs.

4. how do you determine which elements of an
awards strategy can help in increasing employee
engagement and company loyalty?
Research from The Cicero Group
commissioned by The O.C. Tanner
Institute uncovered surprising findings.
BUT...

5. WE SHOULD START BY
ASKING THE right QUESTION.

6. What do
you want?
What makes you feel
most appreciated?VS

7. employees always say
WHEN ASKED
“what do you want”

8. the answer significantly changes.
WHEN ASKED
“what makes you feel most appreciated?”

9. of employees say that an
awards-based recognition
program would cause
longer lasting feelings of
appreciation than its
cash equivalent.
THE MAJORITY

10. many employees acknowledged
several limitations of cash as a
recognition item.
WHEN ENCOURAGED
TO FOCUS ON THE
APPRECIATION
EXPERIENCE,

11. See the item and remember
the experience
TOP 4 REASONS WHY PEOPLE CHOOSE AN
award-based recognition program:
1
42%

12. See the item and remember
the experience
TOP 4 REASONS WHY PEOPLE CHOOSE AN
award-based recognition program:
1
42%
Cash is spent quickly
and forgotten
2
22%

13. See the item and remember
the experience
TOP 4 REASONS WHY PEOPLE CHOOSE AN
award-based recognition program:
1
42%
Cash is spent quickly
and forgotten
2
22%
The item will be around
longer than cash
3
21%

14. See the item and remember
the experience
TOP 4 REASONS WHY PEOPLE CHOOSE AN
award-based recognition program:
1
42%
Cash is spent quickly
and forgotten
2
22%
The item will be around
longer than cash
3
21%
Cash is spent on
everyday items
4
19%

15. — JOHN, Focus Group Participant
YOU GET CASH AND YOU’RE JUST
GOING TO BLOW IT AWAY.
that’s my hard work.
That’s what I got.
I THINK MORE OF AN OBJECT IS
GOING TO REMIND YOU,

16. THE PROBLEM WITH CASH:
Cash is spent on non-award
item (groceries, bills etc)
1
Cash is spent quickly and
then forgotten
2
Cash is impersonal3

17. — GENENE, Focus Group Participant
I do think a gift is better.
I’D USE IT TO PAY BILLS.

18. WHEN EMPLOYEES ARE ASKED TO DESCRIBE
THE IDEAL RECOGNITION PROGRAM...
included a
cash reward21%
included an
award item57%

19. it is unlikely to make
an employee feel
appreciated as
effectively as an
award item.
DESPITE THERE BEING STRONG
CONSUMER PREFERENCE FOR CASH,

20. APPRECIATE GREAT WORK
Source: The Cicero Group: Optimizing Employee Recognition Programs
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